The successful issue of bonds with mortgage cover and the strengthening of our equity have had a very positive impact on our balance sheet ratios and on our financial position in general. This improved position enables us to contribute more actively to the development of new products, generating recurring sales. In the longer term, this will mean stabler, more predictable and less cyclic turnover development. However, this approach will take a little time to bear fruit: sales growth will not occur until the second half of 2014, extending into 2015.
This, in combination with the postponement of some major orders to the second half of the year, has resulted in provisional sales in the first half of 2014 of EUR 4.771 million, 13% down on the first half of 2013 (EUR 5.505 million). Things are looking brighter, however, as the record number of applications we received earlier in the year has translated into a sharp rise in the number of quotations given. At a total value of between EUR 9 and 10 million, this represents a 80%-90% increase on the first half of 2013. In view of this increase, we maintain our sales objectives for 2014.
Sales by business unit in the first half of 2014 vs first half of 2013
(x EUR 1,000)
HY1 2014
HY1 2013
Change
Test
2,199
2,166
+2%
Supply Chain Management
839
1,194
-30%
Failure & Technology Analysis
675
703
-4%
Test Engineering
221
293
-26%
Qualification & Reliability Investigation
837
1,149
-27%
TOTAL
4,771
5,505
-13%
Due to the strengthening of our working capital we can now also contribute to the continuity of our customers` operations, especially Fabless Companies (FCs). They are often frustrated in their development by continuing lending restraint among banks. We are now better able to offer solutions in collaboration with our partners. With this approach, we aim to boost the development of FCs and to improve our sales and market position.
`I would like to reiterate the two examples of collaboration/co-financing that we mentioned in the brochure for the bond loan, because they illustrate so well how we are working towards stabler sales development.
An aeronautical and aerospace customer with a good track record, a leading market party, is contracted by an end-customer to develop an innovative detector. This work requires special equipment/tooling. By co-investing in the development phase of this innovative detector on the strict condition that RoodMicrotec will later be hired to handle mass production, RoodMicrotec can generate recurring business. This provides a solid basis for significant additional sales, while also recouping the original investment.
Another customer who is active in radio frequency, and who also has a good track record, is looking for a partner to market a new product. RoodMicrotec is prepared to invest in future business in partnership with this customer. In this way RoodMicrotec will strengthen its market position and realise additional sales`, Philip Nijenhuis, RoodMicrotec CEO commented.
In order to profit maximally from the development of new products and the considerable number of attractive projects in the market, strengthening our sales team remains one of our priorities.
Outlook The semiconductor industry is showing positive growth. Based on the record number of quotations, we expect, in line with our earlier prognoses, to realise significant sales growth in the second half of 2014 and beyond.
Financial agenda 2014/2015
28 August 2014
Publication interim report 2014
28 August 2014
Conference call for press and analysts
13 November 2014
Publication trading update
8 January 2015
Publication annual sales figures 2014
26 February 2015
Publication annual figures 2014
26 February 2015
Conference call for press and analysts
12 March 2015
Publication annual report 2014
23 April 2015
Annual general meeting of shareholders
14 May 2015
Publication trading update
9 July 2015
Publication sales figures first half 2015
27 August 2015
Publication interim report 2015
27 August 2015
Conference call for press and analysts
12 November 2015
Publication trading update
Forward-looking statements This press release contains a number of forward-looking statements. These statements are based on current expectations, estimates and prognoses of the board of management and on the information currently available to the company. The statements are subject to certain risks and uncertainties which are hard to evaluate, such as the general economic conditions, interest rates, exchange rates and amendments to statutory laws and regulations. The board of management of RoodMicrotec cannot guarantee that its expectations will materialise. Furthermore, RoodMicrotec does not accept any obligation to update the statements made in this press release.
About RoodMicrotec With 40 years` experience as an independent value-added service provider in the area of micro and optoelectronics, RoodMicrotec offers fabless companies, OEMs and other companies a one-stop shopping proposition. With its powerful solutions RoodMicrotec has built up a strong position in Europe.
Our services comply with the industrial and quality requirements of the high reliability/space, automotive, telecommunications, medical, IT and electronics sectors.
`Certified by RoodMicrotec` concerns inter alia testing of products to the stringent ISO/TS 16949 standard that applies to suppliers to the automotive industry. The company also has an accredited laboratory for test activities and calibration to the ISO/IEC 17025 standard.
The value-added services comprise inter alia (eXtended) supply chain management, failure & technology analysis, qualification & burn-in, test- & product engineering, production test (including device programming and end-of-line service), ESD/ESDFOS assessment & training, quality & reliability consulting and total manufacturing solutions with partners.
RoodMicrotec has branches in Germany (Dresden, Nördlingen, Stuttgart), the UK (Bath) and the Netherlands (Zwolle).
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: RoodMicrotec N.V. via GlobeNewswire HUG#1820551
